On February 2 of the current year, Frippery Furnishing Inc. factored $700,000 of its accounts receivable with Fowel Financing Company on a with recourse, notification basis. The finance charge was 2.5 % of the book value of the accounts receivable. Fowel Company withheld an additional 3.5% of the book value of the accounts receivable to cover for sales adjustments. At the time of the transfer, uncollectible accounts were estimated at $10,000. The terms of the contract allow Frippery Furnishing Inc. the option to repurchase the accounts receivable. During February and March, Fowel Company collected $673,900; sales returns and allowances were $9,500; sales discounts were $6,600; and uncollectible accounts were $10,000. On April 7, Frippery and Fowel made a final cash settlement. Required: Prepare journal entries to record all of the above transactions.